A doctor's office charges no-show patients $30 if they do not cancel their appointment 24 hours prior to the appointment. In this scenario, which of the following can be used by the doctor's office to handle the risk of idle service capacity
A) A capacity straddle strategy
B) A capacity lag strategy
C) A revenue management system
D) A pull system

Question

Quizplus · Accepted Answer

A revenue management system can be used to handle the risk of idle service capacity by charging no-show patients a fee. This encourages patients to cancel in advance and allows the doctor's office to fill open appointment slots with other patients. This system is commonly used in the healthcare industry to optimize revenue and manage capacity utilization. A capacity straddle strategy involves adding capacity to accommodate fluctuations in demand, while a capacity lag strategy involves delaying capacity additions until demand has been proven. A pull system is a production strategy that involves production only when there is demand for a product or service. None of these strategies directly address the issue of no-show patients and idle capacity in a doctor's office.

A Doctor's Office Charges No-Show Patients $30 If They Do